Uttar Pradesh (UP) state government announced today that it has massively hiked the fund allocation for startups in the state from Rs 5 crore to Rs 250 crore, the state govt will use the startup fund to set up incubators in Lucknow.
The UP startup fund is in pursuance of the Centre’s ambitious Startup India programme through which it aims at encouraging entrepreneurs to set up businesses and be job creators.
The above news was first reported in Times of India.
The UP Information Technology and Startup Policy-2016, which was introduced by then Akhilesh Yadav government, seeks to encourage establishment of small business and industries by providing sops like interest subsidy and exemption in stamp and electricity duty.
Last month, the state Chief Minister Yogi Adityanath announced that the state government will link 60,000 villages of the state with the Start-up India programme.
Prior to that, it was also announced that Uttar Pradesh’s capital city Lucknow will get biggest incubator centre that the Indian startup ecosystem has seen till date.
Uttar Pradesh has always been a backward in terms of breeding ground for startups. Despite ever booming startup ecosystem of the country, no major startup has ever been able to make news on global scale especially if we compare to its neighboring areas of Delhi-NCR, or Bangalore for that matter.
In last couple of years, only handful of startups, which is based out of Uttar Pradesh, managed to receive funding. Last UP-based startup in news was education startup EduGorilla which had raised funding in July 2017.
In March 2016, Indian Institute of Technology, Kanpur (IIT-K) has sanctioned seed funding of Rs 50 lakh for a Lucknow-based startup, Decentrik Technologies, which makes mobile water ATMs for people in local areas.
Later in May 2016, an another Lucknow-based education startup EduAce Services had raised $1 million in seed funding from MoMagic.